FX Singapore: Different Types of Orders

There are two ways that you can trade. One is simple buying and selling of currency pairs that the FX Singapore dealer offers. You go long (buy) one currency and short (sell) in the other currency in the pair. The second way is to trade in derivatives that have a specific currency pair as the underlying asset. Both these techniques are similar to what stock traders use on daily basis in stock markets.

However, the simple buying and selling of currency pairs is more common; most new traders are relatively unfamiliar with the way derivatives are traded in FX Singapore. One buys or sells a currency pair in the hope that the exchange rate of the currencies in the pair will move favourably to the position taken in the trade. For example, a long position in AUD/USD pairs yields profits when the exchange rate of the Australian dollar goes up in relation to the US dollar and a loss if it goes down. The exchange rate will rise when the value of the AUD dollar increases against the US dollar, which means that the bet is on the Australian dollar.

Here again, while initiating a trade in a FX Singapore account a trader may place a market order or a limit order. A market order is executed at the current prevailing price quoted on the FX Singapore trading platform. A limit order on the other hand signifies a specific price at which the order should be executed.

You also have the option of placing a take-profit order with the FX Singapore dealer. This means that your open position will be automatically closed once the price moves up to the specified level. Similarly, you can place a stop loss order to protect yourself against sharp downward movement in price.